Author Box
Articles Categories
All Categories
Articles Resources

IVA and the Affordable Debt Help It Provides

June 07, 2012 | Comments: 0 | Views: 168

IVA or the individual voluntary arrangement is a legal arrangement between two parties i.e. the debtor and the creditor. It is quite a new and modern alternative to the concept of bankruptcy. It is now a common practice for people to file bankruptcy so that they think they can get out of the burdens of debts. However, this is not the case. Bankruptcy can put a bad effect on your credit history and can lead to bad credit score for straight 10 years.

You can only take a little benefit from filing a bankruptcy if you have taken secured loans and the bankruptcy discharge can help you get any of your collateral based assets back. In comparison to that, IVA is an alternative that can get you out of such sticky spots.

What is an IVA?

An IVA is a legal document that lasts for almost 5 years and then after this period the debtors will be free from the burdens of debts. IVA was introduced in the late 1980's but has now become popular in the recent years due to the high filing of bankruptcy rates in the market of debtors.

To start with, all those debtors who think that bankruptcy is the only option should open up their thinking and should start to think out of the box. This means that they have to be proactive about their approach towards solving debt issues. Here IVA helps. An IVA is suited to debtors who can pay the newly defined low payment installments to creditors through either financial help from relatives or the discretionary income that is left with them after they have expensed out on their needs.

Debt help

IVA helps to define the amount of payments for the debtors, so that they can pay the amounts out of their pockets. The default rate of interest is also lowered down to the nominal rate, which can be paid by the debtors. Because this is a legal arrangement, the creditors cannot bug you with extra payments or rates of interest.

The debt management companies provide an IVA. These companies not only provide this arrangement but also give out options like the debt management pans and the debt negotiation plans. Such alternatives to bankruptcy are cheaper in rates and fee, and can be availed without getting the credit history effected. However, if you already have availed any of the options in last 6 years, you cannot avail them again before 6 years time.

How to look for help

If you want to find in details against the options described above, you can contact an accountant in bankruptcy or the counselors and lawyers that deal in the subject. They will all guide you in this regard. Apart from that, you can take online help from the blogs and the forums on which people upload the information and the experiences they had while they availed any option out of the above.

User review sections on many blogs and portals also help you with the decision-making on how to avoid the bankruptcy concept and still get out of debt issues through the most feasible bankruptcy alternative of all.

Najeen Zahoor is a professional writer in the field of finance. If you are looking for tips on how to take care of your financial health, you can contact her at

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Debt Management


Debt Issues

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 558

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 303

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 288

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 300

As experienced bankruptcy attorneys, we know that people are forced to file for bankruptcy for many reasons. Though sometimes circumstances are outside of your control (sudden unemployment, high

By: Christopher Ml Finance > Bankruptcyl June 15, 2012 lViews: 218

With the innovations caused by the development of the internet years ago, a lot has changed, specifically in the world of customer service. You can now get product information online, contact

By: Anthony Clinel Finance > Bankruptcyl June 13, 2012 lViews: 182

If your business is struggling and you decide to file bankruptcy there are several options available for your consideration. You don't necessarily need to close your business down. Understanding the

By: David Changl Finance > Bankruptcyl June 12, 2012 lViews: 202

If you are not able to fill the bankruptcy forms on your own, then you should take help from the many financial helpers in the market. However, let me tell you one thing straight. It is a good sign

By: Muhammad Azam Goharl Finance > Bankruptcyl June 12, 2012 lViews: 145

When it comes to bankruptcy, there's a lot of information you need to know. Finding all of this in one source can be difficult and frustrating for many people. You probably have a lot of questions at

By: Christopher Ml Finance > Bankruptcyl June 12, 2012 lViews: 311

According to Dave Ramsey, bankruptcy is in the top five worse things that can happen to you in a life time. It stands near divorce, illness, disability and loss of a loved one. After all bankruptcy

By: Krzysztof Wasilakl Finance > Bankruptcyl June 11, 2012 lViews: 173

Bankruptcy is the state of people when their financial condition is insolvent and they are not left with any money. They have to bear with the outstanding debt issues, pay huge amounts of interest on

By: Najeen Zahoorl Finance > Debt Reliefl July 03, 2012 lViews: 156

Are you not able to manage the debts that are outstanding, and are creating issues for your credit history? Are you living with the threats of your creditors, and now you know that may be, you do not

By: Najeen Zahoorl Finance > Debt Managementl July 03, 2012 lViews: 169

Bankruptcy has to be avoided at all costs. This is not because it takes time to be filed and helps one to get out of debt issues, but it is costly and is troublesome. Bankruptcy cannot help you if

By: Najeen Zahoorl Finance > Bankruptcyl June 07, 2012 lViews: 164

Discuss this Article

comments powered by Disqus